On Thursday, OpenAI unveiled a prototype of its new search engine, SearchGPT, designed to deliver “fast and timely answers with clear and relevant sources.” Currently in alpha testing with a select group of users, SearchGPT is intended to be integrated into OpenAI’s popular ChatGPT in the future.
This development has heightened concerns among Alphabet investors about OpenAI potentially capturing market share from Google by offering alternative methods for online information retrieval. SearchGPT aims to provide a more natural and intuitive search experience, allowing users to ask follow-up questions as if they were engaging in a conversation.
OpenAI CEO Sam Altman highlighted the company’s belief that search can be significantly improved, as stated in a post on X. Following the announcement, Alphabet’s shares dipped approximately 2.5%, while the Nasdaq showed a slight increase.
In response to competitive pressures, Google had recently introduced AI Overview in May, a feature designed to summarize answers at the top of search results. However, the feature faced criticism for delivering sometimes nonsensical or inaccurate results, and lacked an opt-out option.
This announcement comes on the heels of OpenAI’s launch of “GPT-4o mini” last week, a new variant of its most advanced model, GPT-4o, introduced in May. With backing from Microsoft and a valuation exceeding $80 billion, OpenAI is focused on maintaining its leadership in the generative AI sector, despite the high costs associated with developing and training its models.
Last month, OpenAI bolstered its executive team with the hiring of Sarah Friar as Chief Financial Officer and Kevin Weil as Chief Product Officer. This move aligns with OpenAI’s strategy to stay at the forefront of generative AI and multimodal capabilities—enabling the integration of various types of AI-generated media, including text, images, audio, and video, within ChatGPT.
The SearchGPT prototype is expected to enhance user experience through its visual results, aiming to offer a deeper understanding of search queries. OpenAI’s COO Brad Lightcap previously emphasized the importance of multimodal interaction, reflecting the company’s vision of a more comprehensive approach to AI technology.
